The firm’s steadiness sheet has not appeared wholesome in current instances — its second quarter international gross sales decreased 14.three %, marking an adjusted internet lack of $32 million. As such, GameStop CFO James Bell introduced that up to 200 “underperforming” stores will likely be closed between now and the tip of the 12 months. In the corporate’s current earnings name, Bell added that, “While these closures were more opportunistic, we are applying a more definitive, analytic approach, including profit levels and sales transferability, that we expect will yield a much larger tranche of closures over the coming 12 to 24 months.”
Despite these closures — and efforts to revamp the better-performing stores — it is unlikely that GameStop’s fortunes will change any time quickly, thanks largely to the tip of the present console technology and subsequent weaker title launches. As a outcome, Bell mentioned, the corporate expects its year-over-year gross sales to be down for the following three to 4 quarters.